Cleco providing savings to customers from corporate tax decrease
PINEVILLE, La. – Today, Cleco confirmed it will pass along savings to customers related to the recent tax reform.
The Tax Cuts and Jobs Act, which was signed into law on Dec. 22, 2017 and became effective on Jan. 1, 2018, decreased the federal corporate tax rate from 35 percent to 21 percent, reducing the amount of federal income tax Cleco will have to pay.
“Since January 1, Cleco has been accruing the money collected from customers due to the change in the tax law with the expectation that it will be returned to customers,” said Terry Taylor, Cleco chief financial officer. “In our ongoing commitment to customer affordability, we are working closely with the Louisiana Public Service Commission (LPSC) on how the tax changes will be reflected in customer rates.”
Yesterday, the LPSC directed utilities, including Cleco, to provide recommendations by March 21, 2018 as to how the federal tax-related benefits will be flowed through to their respective Louisiana ratepayers.
“In an effort to promptly provide our customers with the benefits of the federal tax reduction, Cleco will deliver a plan to the LPSC outlining customer savings,” said Taylor. “We have anticipated these savings and are prepared to pass them along to our customers at the direction of the LPSC.”